Callaway invests in simulators. The American company specializing in golf equipment has invested in a minority stake in Five Iron Golf, whic
Callaway invests in simulators. The American company specializing in golf equipment has invested in a minority stake in Five Iron Golf, which offers simulator rentals and golf lessons. The percentage of the capital acquired has not transpired, but the investment, which amounts to thirty million dollars.
Five Iron Golf, founded in 2017 by Nora Dunnan, Mike Doyle and Katherine Solomon in New York, has expanded to nine centers operating in seven cities across the United States. The company also owns an international franchise in Singapore.
For the moment, the company is studying the possibility of opening up to seven new locations, among which are the city of Chicago and Seattle, which plan to open their doors in late December 2021 and early 2022, respectively.
Callway Golf formalized the merger with Topgolf last March
In mid-May, Callaway Golf increased its sales by 47% in the first quarter of 2021, to 652 million dollars, in what represented a record for the manufacturer. The group multiplied his profits from the Topgolf merger almost tenfold, up to $ 272.46 million.
The golf equipment manufacturer posted a loss of $ 127 million in its fiscal year 2020 compared to the 79 million profit the previous year. Likewise, the company had a turnover of 1,589 million dollars in the year of Covid-19, which was 6.6% less than the previous year.
Callaway Golf became part of Topgolf’s capital in 2006 and, until the merger, controlled 14% of the US company. Following the agreement, signed in March this year, Callaway Golf owns 51.3% of the new company, and former Topgolf shareholders the remaining 48.7%.